The gambling regulatory system in Belgium is facing a crisis of confidence. According to recent data presented by the Belgian Association of Gaming Operators (BAGO), more than two-thirds of online gambling traffic on the country’s most visited sites is currently directed towards unlicensed operators, a trend that threatens the foundations of the channeling model implemented by the Belgian government.
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The organization warned that these figures highlight a significant risk to player protection. Users who leave the regulated system lose access to government oversight, legal safeguards, and social support mechanisms provided for in Belgian legislation, leaving them exposed to gambling practices without age controls, deposit limits, or affordability checks.
The gambling system in Belgium is based on a channeling policy, under which the government has opted to try to direct all gambling activities to authorized sites. However, the restrictions imposed on licensed operators are having the opposite effect, pushing users towards illegal platforms that offer less friction and greater incentives.
Young Adults: The Most Vulnerable Segment to the Black Market
Evidence gathered by BAGO suggests that the channeling model is under increasing pressure, especially among the younger segments of the population. Young adults appear to be particularly exposed to illegal gambling, with data indicating that around 65% of male gamblers between the ages of 18 and 21 in Belgium are currently playing on unlicensed sites.
This figure is alarming considering that these illegal operators do not apply Belgian age verification rules and frequently promote aggressive bonus structures specifically designed to attract young users. The combination of unrestricted access, generous bonuses, and the absence of affordability checks exponentially increases the risk of developing problematic gambling patterns among younger users.
Self-Excluded Gamblers Continue to Bet on Illegal Platforms
One of the most concerning findings of BAGO’s analysis relates to the effectiveness of the Information System for Excluded Persons (EPIS), an electronic database listing all gamblers who have self-excluded from gambling in Belgium, either voluntarily or by court order.
The data reveals that nearly 47% of individuals registered in EPIS continue to gamble through unlicensed platforms. This directly undermines one of the fundamental consumer protection measures within the Belgian regulated system, specifically designed to help people with gambling problems stay away from betting.
Regulatory Restrictions Drive Black Market Growth
These results align with the findings of a study conducted in the EU and other regions in 2024 by H2 Gambling Capital, a research firm specializing in gambling market analysis. The study found that participation in illegal online gambling had increased in eight out of ten European markets following the imposition of new consumer protection measures.
Even more alarmingly, a Yield Sec study from last year suggested that as much as 71% of gambling in the European Union is currently conducted on black market sites, a figure that, if accurate, would indicate that the European regulatory model has failed in its fundamental objective of channeling gambling into controlled environments.
In all these studies, researchers identified the same structural drivers of black market growth. Unlicensed operators provide much less friction for users, with no mandatory deposit limits, no affordability checks, no exhaustive identity verification, and no advertising restrictions.
Furthermore, these illegal operators tend to offer much higher bonus incentives, faster withdrawal rates, and a smoother user experience compared to their licensed rivals, who must comply with strict regulations that paradoxically make them less competitive.
Balancing Protection and Competitiveness in Regulated Markets
The Belgian case illustrates a fundamental paradox faced by gambling regulators across Europe: measures designed to protect consumers can inadvertently push them towards completely unregulated environments where no protection exists.
The experience of Belgium, the Netherlands, and Germany suggests that there is a critical balance point between protective regulation and the competitiveness of the legal market. When restrictions become too onerous compared to easily accessible illegal alternatives, consumers simply opt out of the regulated system.
The solution, according to BAGO and industry experts, lies not in eliminating consumer protections, but in combining sensible, evidence-based regulations with much more effective law enforcement against illegal operators, creating an environment where the legal market is simultaneously safe and competitive.
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